Banks will no longer be required to provide independent mark to market of derivatives
The centrally cleared trades will require the counterparties to deposit initial and variation margin with the CCP
Non American and non European counterparties will not centrally clear trades with their European and American counterparties
Banks will no longer be able to take positions with huge outstanding notionals
Local Commercial Bank
Clearing and settlement of all Front Office deals
Mitigating operational risk
Record keeping of all Front Office deals
Running daily risk checks such as VaR aand sensitivity analysis on the Front Office
Asset Liability Management (ALS)
Product Control (IPV)
P&L and VaR Reports
Spot and Vol Sensitivity Analysis
Expriry and Delivery Reports
Vol Surface & Market Data
Automatic Comparison of Trades via eValueX
DGX (Building Multiple Pages encompassing all the instruments that they cover)
Blotter (Trade Repository & Greeks)
SDX (Portfolio with Sensitivity Analysis)
Portfolio (Override spot and vol data inputs)on SDX
Term Structure Manipulation on SDX
Risk Matrix on SDX
Pricing Table on SDX
Independent fair market value
Multiple data cuts
Revaluation of cross asset portfolios
Trade View (Blotter)
SDX- FX + DataX
Price on SDX, Deal Capture to TradeView, Integrate SD into Summit. When the Front Office trades a TARN or a commodity that Summit cannot handle, TradeView will communicate with the back office system to perform all the necessary trade events (and MTM) and thus the limitation for the front office will be eliminated
SDX enables the pricing of the widest range of exotic option types on all asset classes. With SDX the back office can price all these trades exactly like the front office. This should eliminate this limitation by the Back Office.
RMX offers the widest and most comprehensive coverage of exotic options for FX and CM, including TARNs that can automatically be managed and captured into their Back Office System.
Automated portfolio valuation (eValueX) integrated into the Back Office System enables Mark to Market of the portfolio, including the TARNS and Commodity Instruments, and this is probably the most cost-effective integrated solution to help eliminate this limitation
C. Market Data
D. Pricing Table
F. All of the above
G. A,B, and C only
H. A, B and D only
Discuss DGX with them, especially emphasize that DGX can save them costs in other areas
B. Discuss with them "Bulk Pricing" (more licenses for a much lower total cost per license)
C. Discuss the low cost of ownership of distribution tools
D. Assess with them areas that they targeted for cost-cutting and see if SD can save costs in these and other areas (ie market data costs)
E. You should not discuss any of these options with purchasing as they are not the decision makers, traders are.
B, C, and E only
A, B, and D only
An optimization mechanism to get the SD vol surfaces (output) as close as possible to the cleansed market data points (input)
Choosing the best model to calculate the price of the option
Collection of maximal data points for a tenor to best represent the market
Choosing the best data type (broker, market maker, exchange) to most accurately represent a particular tenor
SD builds arbitrage free, smooth volatility surfaces from cleansed market data
SD uses the maximal amount of data points per tenor (data inputs)
SD uses market fixing rates that other vendors do not
SD doesn't use B&S formula whereas other vendors are pricing using B&S
Convince him to schedule a training session for the two SD sales users - to make sure they are up to date with the new features.
Discuss ability to easily upgrade to RMX and a significant discount on price
Emphasise sales solution functionalities, and offer to expand licenses to the entire team at cost effective bulk pricing, along with ability to capture into tradeview for ongoing alerts etc.
Offer existing package at dramatic discount - so long as you keep the business.
Use our risk and analytics solution to price on SDX-IR, capture to RMX and actively manage the risk. all on one simple SAAS application.
Suggest rolling out a sales solution process between the liquidity provider and the corporate banks - with ability to feed in the market maker's own market data and use the SD RFQ mechanism for execution
Use SDX-IR with Trade view for full front to back life cycle management
This is exactly a situation where the distribution solution is not relevant as they are happy with what they have. You need to focus efforts on convincing the traders of the liquidity provider to use SDX-IR as a stand-alone system for 'sanity checks'
Bank could roll out complimentary DGX access to VIP customers as a value added service
Enable DCX and offer VIP customers a direct multi bank trading platform - transforming their use of SD from an indicative pricing system to a live execution platform
Bank could upgrade SDX to corporex functionality (trade view + reports) - upload customers' exposures and generate relevant value added reports (Hedge effectiveness / Hedge Vs. exposure...)
Bank could roll out SPX licenses to preferred customers - for a simplified pricing/RFQ/execution mechanism between bank and customers - similar to the single bank platforms of the 1st tier banks
Mark to Market + Clearing & Settlement + NAV & VAR
Product control (IPV) + Credit + Market Data + Model Validation
Traders + Analysts + Clearing & Settlement + Mark to Market
Structurers + Analysts + NAV & VAR
SDX + save to portfolio + open historical date at the relevant cut offs + click calculate + export to ecxel
EValuex - this is a classic revaluation deal
SDX + deal capture to trade view + scheduled M2M reports (evaluex)
SDX + save to portfolio + open saved portfolio - click calculate at exactly 15:00 & 17:00 London + export to excel
What are your exposures?
How often do you calculate NAV?
Do you only do zero- cost strategies?
Are you hedging on a group level and netting your exposures?
What is your forwards vs options ratio?
Here's an interesting quiz for you.